Randstad NV reveals businesses delay investments and hiring due to persistent economic uncertainty
Randstad NV, the world's largest recruiter, reports that ongoing macroeconomic uncertainty is causing businesses to hesitate in making significant investment and hiring decisions, as per BNN Bloomberg.
Persistent inflation in the US and Europe, slower economic growth, and uncertainty about future interest-rate cuts are impacting client spending patterns in key markets, according to Chief Executive Officer Sander Van’t Noordende.
Van’t Noordende, in a phone interview after the company's second-quarter results, stated, “Businesses are looking to see what these governments are going to do” following recent elections in Europe. He also noted that hiring levels are subdued in anticipation of the US elections in November.
Staffing firms observe a decline in activity levels, reflecting lower confidence among clients and candidates. Earlier this month, UK recruiter Pagegroup Plc mentioned it expects “no immediate signs of improvement” in most of its markets.
The tightening of hiring budgets has led to fewer vacancies, longer hiring times, and increased selectivity in staffing choices. Candidates, less inclined to change jobs in this environment, prefer to wait for better business sentiment.
Van’t Noordende commented, “Quit rates have gone back to pre-pandemic levels in the US, for instance.”
In the second quarter, Randstad's organic revenue decreased by 7.5 percent. Following the report, the company's shares fluctuated but were trading 1.8 percent higher as of 11:37 am local time in Amsterdam.
